Property mkt sentiment turns pessimistic in Apr-jun: Report

Sentiments in the real estate market turned pessimistic during the April-june quarter because of the outbreak of the second wave of Covid-19 pandemic but the future outlook for the next six months remains optimistic, according to a survey by Knight Frank, FICCI and Naredco. In the 29th edition of Real Estate Sentiment Index Q2 2021, the consultant said the current sentiment score dropped to 35 in April-june 2021 from 57 in the first quarter of this calendar year. However, it said that the drop is less intense than it was during the first Covid wave (Q2 2020) when the score had hit an all-time low of 22. The Future Sentiment score has inched down marginally to 56 in Q2 2021 from 57 in Q1 2021 but continues to remain in the optimistic zone. A score of above 50 indicates 'Optimism' in sentiments, a score of 50 means the sentiment is 'Same' or 'Neutral', while a score below 50 indicates 'Pessimism'. The survey is of supply side stakeholders including real estate developers, banks and other financial institutions. Knight Frank India Chairman and Managing Director Shishir Baijal said, "The tragedy of the second wave of pandemic has pushed the overall industry sentiments down in the second quarter of 2021." The availability of vaccines, a robust vaccination programme, along with continued economic activities have been the primary reason for the optimistic future sentiment score, as compared to last year, he added.